Creating several passive income streams is a dream for many entrepreneurs. It can accelerate plans to make extra income, pay off debt, and invest in building wealth.
Passive income is all about money making money 24/7. It’s about buying money-producing assets and investing time to build products that generate income without future effort.
Passive income that is always passive is usually found in the form of investments. With this type of income, you make a purchase and forget it.
Then make money when you sell the stock down the road through capital gains. That isn’t a continuous form of income, but it can come in handy when you’re ready to retire.
When the bonds mature, you can reinvest the returned principal in new bonds and start a new ladder or continue adding on to your current one.
You can earn passive income with interest when you loan money to someone else.
Real estate investing with REITs is like buying and selling stocks on major stock exchanges. These funds include commercial real estate, movie theatres, apartments, office buildings, and more.